Os efeitos expansivos das transferências intergovernamentais e transbordamentos espaciais de despesas públicas: evidências para os municípios brasileiros - 1996

Abstract

This document has two main objectives. First is to verify if intergovernmental lump-sum grants has a more expansive effect on local government spending than an equivalent increase of the private income. This evidence, largely founded in empirical studies, confronts with the main result of the classic model of public financeóthe median voter modelóthat establish that intergovernmental grants and equivalent increases on the median voter private income must have the same effect on public expenditure. Second objective is to test for the existence of spill-over effects on municipal expenditures, that is, to measure the impact of the expenditure of one country on the expenditures of his neighborhood countries. With a sample of more than 3500 Brazilian countries (1996) and econometric techniques which incorporates spatial correlation, we try to verify if the public expenditure of one country depends, besides other factors, on the expenditures of neighborhood countries.